Market sentiment is currently bearish, as shown by negative or low funding rates across major exchanges.

Funding rates are used in perpetual futures contracts to keep their prices aligned with the spot price of the asset. These rates shift based on whether the majority of traders are long or short.

A funding rate above 0.01% implies more longs than shorts (bullish), while a rate below 0.005% points to more shorts than longs (bearish).

The takeaway: Persistent low or negative funding rates suggest traders expect further declines, aligning with a downtrend in the crypto market.